Daines Secures Agreement to Ship $200 Million of Montana Beef to China

Statement

U.S. Senator Steve Daines secured an agreement between JD.com, one of China's largest retailers and the Montana Stockgrowers Association with the intent to purchase a minimum of $200 million in Montana-sourced beef over the next several years. JD.com will also seek to invest up to another $100 million to build a processing plant in Montana to support Montana beef production, with construction beginning as early as 2018.

While President Donald Trump is in China to grow and strengthen the American economy, Errol Rice, Executive Vice President of the Montana Stockgrowers Association and JD.com signed the agreement. U.S. Secretary of Commerce Wilbur Ross Jr. and Chinese Vice Premier Wang Yang were in attendance to witness the signing of this agreement.

"This landmark agreement has the potential to substantially increase Montana opportunity and agricultural exports to the fastest growing overseas market for beef," Daines stated. "This is a win for Montana's hardworking ranchers."

This agreement follows Daines' agricultural roundtable in Belgrade, Montana where Chinese Ambassador Cui Tiankai, Chinese business representatives and Montana agricultural leaders discussed potential opportunities for expanding the relationship between Montana producers and Chinese consumers.

Daines wrote letters to both U.S. and Chinese leadership in support of the deal.

Errol Rice, Executive Vice President, Montana Stockgrowers Association: "The Montana Stockgrowers Association thanks Sen. Daines for his work on expanding opportunities and access to overseas markets for Montana ranchers, particularly in lifting the ban on U.S. beef in China earlier this year. While there's a lot of work that needs to be done, this MOA represents a great step in the right direction for selling more U.S. beef in China and developing productive relationships between Montana ranchers and Chinese consumers."

Kenny Graner, President, United States Cattlemen's Association: "Finding additional opportunities for U.S. beef in foreign markets is crucial to strengthening the bottom line of U.S. cattle producers. We commend Errol Rice, Fred Wacker, the Montana Stockgrowers Association and Senator Steve Daines for their efforts in bringing this partnership to Montana. This is exactly the sort of forward-thinking solution that is needed to open up new markets for U.S. beef products and ensure that we leave a successful and profitable future for generations of Montana producers. We encourage other parts of the country to follow this example and seek out their own innovative solutions to increase market access, and therefore economic opportunity, for U.S. cattle producers."

Fred Wacker, Owner/Operator, Cross Four Ranch: "China's market has the potential to be a game-changer for Cross Four Ranch and Montana ranchers more broadly. The MOA shows how much interest there is in China for high quality cattle and beef from Montana and the U.S. and I appreciate Senator Steve Daines' efforts to help connect me with potential Chinese buyers."

JD.com intends to import Montana-sourced beef from MSGA members to China for direct sale to the 258 million Chinese consumers on its e-commerce platform. The procurement agreement is proposed for an initial three years, with a minimum commitment of $200 million in beef to be imported by JD.com from MSGA members at fair market value during the term. If fulfilled, it is estimated that JD.com's purchase of beef will increase Montana beef export sales by as much as 40 percent in 2018.

Click HERE to read the official signing agreement and click HERE to read the initial business agreement signed on October 23 by Errol Rice, Executive Vice President, Montana Stockgrowers Association, Fred Wacker, Owner/Operator, Cross Four Ranch, Richard Liu, Chairman & CEO, JD.com, Inc. and Chen Xu, President & CEO of Bank of China USA.

Source